QuickBooks uses payroll items to track individual amounts on a pay check and accumulate year-to-date wage and tax amounts for each employee. There are payroll items for compensation, taxes, other additions and deductions, and employer-paid expenses.
You have to know what type of payroll item you would like to create in QuickBooks.
To create a new payroll item
- From the QuickBooks menus at the top, click Lists > Payroll Item List.
- At the bottom left of the Payroll Item List, click the Payroll Item dropdown button, and choose New.
- Select a method
- Click Next, and follow the on-screen instructions.
You can edit payroll item
- Open the payroll item.
- Click Next and make any necessary changes to:
- Payroll Item Name
- Liability/Expense Account Associated with the item
- How to Calculate the item
- Default Rates and Limits (Rates and Limits entered here will affect all employees)
- Click Next until you can click
You can always edit the settings for a specific payroll item. However, some changes will affect only future payroll checks and not those recorded prior to making the change.